Stellar Returns
Pantera Capital, a leading crypto investment firm, saw its Liquid Token Fund surge by 66% in the first quarter of 2024. This impressive gain was primarily driven by investments in digital assets, particularly Solana (SOL).
Solana’s Contribution
Solana’s value has skyrocketed in recent months, with the cryptocurrency briefly crossing $200 this week. Pantera’s investment in Solana from the bankrupt FTX estate played a significant role in the fund’s success.
Other Contributing Factors
Smaller-cap cryptocurrencies and DeFi tokens also contributed to the fund’s strong performance. Ribbon Finance (RBN), Aevo, and Stacks (STX) all experienced significant growth.
Bitcoin and Ethereum Holdings
Pantera’s Liquid Token Fund reduced its exposure to Bitcoin and Ethereum-linked tokens during the quarter. The firm’s portfolio manager cited the low likelihood of a spot Ether ETF being approved in the US as a reason for this move.
Bitcoin’s Performance
Despite Pantera’s reduced exposure, Bitcoin’s price rose by over 60% in Q1 2024, largely due to the launch of spot Bitcoin ETFs in the US. Bitcoin reached a new all-time high in March but has since fallen slightly.
